US Treasury Secretary Timothy Geithner in Europe to chide leaders over budget problems; Experts consider how eurozone crisis will impact US; North Korea breaks naval agreement with South Korea; US sticking to Iraq withdrawal timeline, says Biden; Pakistani Taliban leader may be dead; and more
Top of the Agenda: Geithner Urges Europe to Mend Fiscal Crisis
U.S. Treasury Secretary Timothy Geithner arrived in Europe to urge (WSJ) European governments to fix their budget problems, reasserting a leading U.S. role in managing the global economy. Geithner said continental Europe should accelerate the rescue of its debt-wracked economies, while not cowering on fiscal stimulus. He travels to Germany today to chide its leaders about their recent decision to ban certain short-selling practices, which has added to market turmoil. Geithner's visit coincided with a drop in the U.S. stock market to below 10,000 for the first time since February. U.S. policymakers are growing more confident in telling Europe what to do as the continent's situation worsens, whereas in China, U.S. leaders' confidence remains low.
Much secrecy surrounds Geithner's trip to Frankfurt and his expected meeting with ECB President Jean-Claude Trichet. They are expected (FT) to address a global regulatory response that would stabilize the financial sector, in light of Germany's independent agenda.
Analysis:
In the Daily Telegraph, Edmund Conway says Europe's debt crisis is the "next leg of a global financial crisis."
A New York Times editorial says German politicians and commentators are "callously and self-destructively" turning to "nationalist illusions" about Germany's role in Europe. More German austerity will likely cripple Europe's nascent recovery.
Background:
In this roundup, six experts discuss the eurozone crisis' potential impact for the United States.
PACIFIC RIM: N. Korea Scraps Naval Safeguard Pact with South
North Korea said it was cutting off (NYT) an agreement used to prevent accidental naval clashes with South Korea, while the South conducted a large naval drill as a show of force.
North Korea's alleged sinking of a South Korean ship could have been part of a legitimization process to prepare for a new leader to succeed the ailing Kim Jong-Il, says North Korea expert Victor Cha.
China: China denied rumors (WSJ) that it plans to diversify its foreign exchange reserves away from the euro, which helped boost the currency's value.
ELSEWHERE:
-Biden Says Iraq Exit Won't Be Deterred
-Pakistani Taliban Leader Rumored Dead
This is an excerpt of the CFR.org Daily News Brief. The full version is available on CFR.org